ZCZC
BCN-01
US-ECONOMY-OIL-INFLATION-SANCTION
White House economist sees no impact on oil prices from Iran sanctions
WASHINGTON, April 24, 2019 (BSS/AFP) – The decision to tighten sanctions
on Iran will have “no material impact” on oil prices given the large US
supply of petroleum, White House economic advisor Larry Kudlow said Tuesday.
“We are a country awash with oil and gas,” Kudlow said.
World oil prices struck fresh 2019 highs on Tuesday after the US cracked
down on Iranian oil exports.
The White House announced Monday that eight countries — China, India,
Turkey, Japan, South Korea, Taiwan, Italy and Greece — will face sanctions
starting in May if they continue to buy oil from Iran.
“We don’t see any palpable impact,” Kudlow said at a luncheon event at the
National Press Club. And he said if prices do increase, US producers can
quickly ramp up shale oil production to increase supply in response.
Even so, Brent North Sea crude reaching $74.70 per barrel on Tuesday, the
highest point since early November, before falling back slightly. The US
benchmark WTI hit a similar near six-month high at $66.45.
Kudlow also said first quarter economic growth is “coming in much better
than many of us feared,” and reiterated that GDP should expand by three
percent for the next two years, given the very low inflation despite record
low unemployment rates.
BSS/AFP/HR/0912